Housing loan interest

This query is : Resolved

Prashant (Querist)
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17 January 2012 Hi ,
I'm letting out my new apartment and expecting a rent of Rs 4,000/- PM. for this Home loan do I get full interest as loss on the house or only 1.5 lakhs.
i understand that the income from the house will be added as income less muncipal tax and maintainance.
can you please advice on the same.
Regards
Prashant

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 January 2012 You can claim full interest in case the property is let out.
.
You can deduct Municipal taxes if paid by you. Rent Less Mun. Taxes= Net Annual Value.
.
Maintenance charges is not deductible. But You will get 30% of (48000-Municipal Taxes) as deduction from the net annual value.

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Prashant

Prashant (Querist)
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17 January 2012 Thank you Paras, recently one my collegue took 2 flats at mumbai and he works at hyderabad, in his case does he can avail full interest for both the properties and also HRA benifit as he stays at mumbai.
can you please let me know how much he can save tax on them.

Prashant

Prashant (Querist)
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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 January 2012 Your friend can avail HRA benefit in respect of the house taken on rent at his place of employment.
.
He can claim Interest fully in case both the Mumbai Flats have been let out.
.

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Prashant

Prashant (Querist)
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17 January 2012 Thank you Paras for the valuable information and for your time.

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